I’m thrilled to sit down with Simon Glairy, a trailblazer in the insurance and Insurtech space, renowned for his expertise in risk management and AI-driven risk assessment. With a deep understanding of how technology can transform the industry, Simon has been at the forefront of advocating for embedded insurance as a game-changer in closing protection gaps for underserved markets. In this conversation, we dive into the transformative potential of embedded insurance, exploring how it creates new customers, addresses unmet needs in sectors like the gig economy and small businesses, aligns with regulatory demands, and offers fresh opportunities for brokers to redefine their role in a digital era.
What is embedded insurance, and how does it stand apart from the traditional ways insurance has been sold?
Embedded insurance, at its core, is about integrating insurance products into non-insurance platforms or customer journeys, often at the point of sale or during a relevant interaction. Think of it as offering coverage seamlessly within a banking app, a car purchase, or a gig worker platform—places where customers already are. Unlike traditional methods, where agents or brokers actively seek out clients through standalone policies, embedded insurance flips the script. It meets customers where they’re already engaged, making the process feel less like a sales pitch and more like a natural extension of their experience. This approach removes friction and taps into trust that’s already been built with the platform, which is something traditional channels often struggle to achieve at scale.
Why do you believe embedded insurance excels at reaching people who have never purchased insurance before?
The magic of embedded insurance lies in its ability to connect with people who don’t see themselves as insurance buyers. Many individuals, especially in underserved markets, either don’t trust insurers or don’t think coverage is relevant to their lives. By embedding insurance into platforms they already use and trust—like a digital bank or a work app—it lowers psychological barriers. It’s not about convincing someone to step into an unfamiliar space; it’s about offering protection in a context that feels familiar and relevant. This creates a sense of immediacy and need, turning non-buyers into first-time customers by aligning with their everyday interactions.
Can you share a real-world example of embedded insurance creating first-time buyers and explain what made it successful?
Absolutely, let’s look at a digital bank in Brazil that has made waves by offering life insurance to millions of customers, many of whom had never bought a policy before. What made it work was the trust and convenience factor. These customers were already using the bank for their financial needs, so when insurance was presented as a simple add-on within the app, it didn’t feel like a hard sell. Roughly half of their policyholders were first-timers, which shows how embedding coverage into a trusted ecosystem can break through skepticism and create a new market. It’s about meeting people where they are, emotionally and digitally, with an offer that feels tailored to their life.
How is embedded insurance helping to close protection gaps specifically for gig workers?
Gig workers are one of the most underinsured groups out there, often lacking access to basic protections like income support or accident coverage because they’re classified as independent contractors. In the US, nearly 40% of the workforce falls into this category, and the story isn’t much different elsewhere. Embedded insurance steps in by integrating protection directly into the platforms these workers use daily. For instance, some delivery apps now offer accident or assault coverage for their couriers, with claims processed quickly. This matters because it addresses real, immediate risks that these workers face, filling a gap that traditional insurance models have largely ignored due to complexity or cost.
What challenges do small businesses face with traditional insurance, and how does embedded insurance overcome those barriers?
Small business owners often find traditional insurance daunting—it’s expensive, complicated, and not always tailored to their specific needs. Many don’t even realize they need coverage until it’s too late. Embedded insurance changes the game by partnering with platforms these businesses already use, like payroll or accounting software, to offer relevant policies at the right moment. For example, some platforms now provide commercial insurance to first-time buyers who never sought it out before. By simplifying the process and embedding it into their workflow, it removes the intimidation factor and makes protection accessible, often reaching nearly 40% of customers who were previously uninsured.
In what ways are sectors like telecom using embedded insurance to tap into new markets?
Telecom companies are finding huge success with embedded insurance by offering coverage at critical touchpoints, like when a customer signs up for home internet. In some European markets, such as Slovenia, penetration rates are incredibly high—up to 90%—because the offer comes at a moment when customers are already thinking about protecting their home or digital life. Products like cyber or home insurance are bundled into the onboarding process, making it feel like a no-brainer. It works because it’s timely, relevant, and leverages the trust customers have in their provider, turning a routine transaction into a protection opportunity.
How is the automotive industry leveraging embedded insurance to address emerging risks, especially for electric vehicle owners?
The automotive sector is using embedded insurance to build stronger customer relationships and address specific risks, particularly for electric vehicle (EV) owners. Manufacturers are bundling extended warranties or after-sales coverage right into the purchase process, which helps mitigate concerns about high repair costs or battery replacements—unique challenges for EVs. This isn’t just about selling a policy; it’s about offering peace of mind at the exact moment a buyer is weighing the risks of a significant investment. By integrating insurance into the sale, automakers ensure customers feel supported long-term, while also closing a protection gap that traditional insurers might not address as directly.
What are some of the regulatory challenges insurers face when implementing embedded insurance, and how can they navigate these?
Regulatory frameworks, like the UK’s Consumer Duty rules, demand that insurance products meet genuine customer needs and provide fair value, which can be a challenge for embedded models if not designed thoughtfully. The risk is that insurers might prioritize convenience over relevance, pushing products that don’t truly fit. To navigate this, insurers need to focus on transparency and data-driven personalization, ensuring the coverage offered aligns with the customer’s actual risks. It’s also about proving impact—showing regulators that these products reach underserved groups with meaningful protection, not just flashy add-ons. When done right, embedded insurance can actually align beautifully with regulatory goals by targeting real needs at the right time.
How can brokers adapt to the rise of embedded insurance and remain relevant in this evolving landscape?
Brokers have a golden opportunity with embedded insurance, as it’s essentially a modern take on the affinity model they’ve long understood—offering coverage through trusted partners. Their role now is to design these digital journeys, ensuring they meet regulatory standards and deliver real consumer value. Brokers can act as connectors, linking insurers with distribution platforms and advising on how to structure programs for emerging risks. They’re also key in interpreting customer data to tailor offerings. By embracing this shift, brokers can position themselves as indispensable in bridging traditional expertise with new, tech-driven opportunities, especially in solving protection gaps at scale.
What is your forecast for the future of embedded insurance over the next decade?
I’m incredibly optimistic about embedded insurance over the next ten years. I see it becoming a dominant distribution channel, not just for convenience, but as a primary way to reach millions who are currently uninsured. As technology advances, particularly with AI and data analytics, we’ll see even more personalized and relevant offerings embedded into everyday interactions—think smart home devices suggesting coverage or health apps prompting wellness policies. The focus will shift further toward solving systemic protection gaps, especially in emerging markets and for vulnerable groups. My hope is that insurers, brokers, and platforms collaborate to make insurance less of a product and more of a seamless safety net, fundamentally changing how we think about risk and protection.
